Shell-led LNG Canada approves Phase 2 expansion, doubling export capacity

• The expansion adds two liquefaction trains, increasing total capacity from 14 mtpa to 28 mtpa
• Shell, holding a 40% stake, expects to receive nearly 6 mtpa of additional LNG from the expansion
• LNG Canada is a joint venture including Shell, Malaysia's Petronas, PetroChina, Mitsubishi Corp, and Korea Gas Corp, representing Canada's first large-scale LNG export terminal

Summary

Shell and its partners have approved the Phase 2 expansion of LNG Canada's liquified natural gas facility in Kitimat, British Columbia, representing a multi-billion-dollar investment that will position Canada among the world's largest LNG exporters.

Key Details:

• The expansion will double production capacity from 14 million tonnes per annum (mtpa) to approximately 28 mtpa by adding two additional liquefaction trains
• Shell, holding a 40% stake in the joint venture, expects to receive nearly 6 mtpa of additional LNG from the expansion
• Commercial operations are targeted for the early 2030s
• The decision was announced September 29, slightly ahead of the anticipated October timeframe

Project Partners:

The LNG Canada joint venture is led by Shell (40% stake) and includes Malaysia's Petronas, PetroChina, Mitsubishi Corp, and Korea Gas Corp (KOGAS). This represents Canada's first large-scale LNG export terminal and one of the country's largest private-sector investments.

Market Implications:

The expansion significantly strengthens Canada's position in the global LNG market, doubling its export capacity at a strategic time when global demand for natural gas continues growing. The project represents substantial capital deployment in North American energy infrastructure and reinforces Shell's commitment to LNG as a transition fuel. The early 2030s timeline positions the facility to meet anticipated long-term Asian and European demand for cleaner-burning natural gas alternatives.